After passing a budget 2013 that stipulated €40 billion in austerity cuts, Spain released the results of an institution-by-institution audit of its banks. These stress tests revealed a capital shortfall of €59.3 billion, which is in line with speculation over the last couple of days. With the road cleared for a recapitalization of its banks and a budget that was designed along with Brussels in order to comply with “strict conditionality,” Spain is set to formally request a bailout from the ECB and the European authorities.
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